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Property of Darrellksr From Wikimedia Commons |
If you are worried that disappointed heirs could contest your will or trust after you die, one option is to include a "no-contest clause" in your estate planning documents. A no-contest clause provides that if an heir challenges the will or trust and loses, then he or she will get nothing.
A simple "no-contest clause" will protect only the instrument, such as the trust or will. An enhanced "no-contest clause" will identify and protect other estate planning decisions, such as a beneficiary designation of an annuity, retirement plan, IRA, Keogh, pension or profit-sharing plan or insurance policy, a buy-sell agreement, a family partnership agreement, a limited liability company, or a marital agreement (pre- or post- nuptial), and may even penalize family members that conspire to frustrate the estate plan.
Published March 3, 2014 in the Aging in Place Planning and Elderlaw Blog. This article is general information, not legal advice; see our disclaimer.